Microsoft Saves Over USD 500 Million Using AI, Cuts Jobs Amid Cost Shift

Microsoft saved more than USD 500 million in its call centres last year by deploying artificial intelligence, according to a Bloomberg News report.

Credit: MICROSOFT

The company announced plans last week to lay off nearly 4% of its workforce as it continues to invest heavily in AI infrastructure. In May, Microsoft had already cut about 6,000 jobs.

Chief Commercial Officer Judson Althoff said AI tools are boosting productivity across departments including sales, customer service and software engineering. Microsoft has also started using AI to manage interactions with smaller customers.

The early-stage AI initiative is already generating tens of millions of dollars, Bloomberg reported, citing a person familiar with Althoff’s comments.

Althoff also said AI now generates 35% of the code for new products, helping to speed up product launches.

Microsoft has allocated USD 80 billion in capital spending for this fiscal year, with most of it directed toward expanding data centres to support AI services.

Major tech firms are investing heavily in AI as a key growth driver, while cutting costs in other areas to protect profit margins.

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• Microsoft saved over USD 500 million in call centres using AI

• Nearly 4% of workforce to be laid off amid AI investment

• AI now generates 35% of new product code

Source: REUTERS